Osamu Takashima Market Quotations

The stronger economic outlook is positive for the stock market and may encourage more fund inflows to Asian countries such as South Korea and Taiwan. Such flows are supporting the currencies.

Most market players have already factored in another 25-basis point hike in the key federal fund rate in the FOMC meeting next month, but whether the Fed will keep raising rates in May depends on economic data, such as the CPI.

The dollar-yen will trade in a range of 117-119 yen if the GDP data is in line with the market forecast.

Money should flow into Japanese government bonds, including from foreign investors. It wouldn't be surprising for the recent rise in yen interest rates, which had been ignored by the market until now, to garner attention.

The market has already priced in another interest rate hike in March so the dollar's scope for further gains on rate hike expectations is limited.

The market has already priced in another interest rate hike in March, so the dollar's scope for further gains on rate hike expectations is limited.